How many conditions indicate that a single plantwide factory overhead rate may cause product cost distortions?...

Question

Question

How many conditions indicate that a single plantwide factory overhead rate may cause product cost distortions?...

How many conditions indicate that a single plantwide factory overhead rate may cause product cost distortions?

a.Four

b.Two

c.Ten

d.There are no specific conditions indicating that a single plantwide factory overhead rate may cause product distortions.

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Answer 1

Answer #1

There are two conditions that indicate that a single plantwide factory overhead rate may cause product cost distortions.

Therefore, the correct answer is b. Two

Explanation:

The first condition is that there may be differences in in different production department factory overhead rate.

The second condition is that the products may consume the allocation base in different quantities in different departments.

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Answer 2

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